And no, it’s not the Republicans that did it. That was your friend, the humorless Senator Harry Reid (D, NV). Your student loans are now 6.8%, not 3.4%. So now that useless degree in philosophy or history is now going to cost you even more!
And it doesn’t really matter whether they peg the student loan rates to the current Federal Reserve interest rates, or extend it two years, or longer — the push to get everyone “educated” has created a massive surplus of over-degreed, but ultimately underqualified workers (because that English degree really translates well to most jobs.) It’s simple supply and demand: too many BAs and BSs means you aren’t competitive and you get the added benefit of being in deep, deep debt.
Of course, the immediate reaction is to forgive student loan debt. It certainly would give more bang for the buck than the bank bailouts — young adults with no debt=stupid spending patterns, and the money is already a sunk cost. I’d love them to forgive my student loan debts, but it’s a terrible idea: